Residents of the Federal Capital Territory (FCT), Kogi, Nasarawa and Niger States are to express total blackouts if the alleged infractions by the Abuja Electricity Distribution Company (AEDC) are not resolved.
According to Orders issued in Abuja by the Transmission Company of Nigeria (TCN), AEDC had allegedly failed to provide an adequate Bank Guarantee, and did not comply with Market Rules.
In the two separate orders obtained by NewsNGR, and signed by the Market Operator, Ali Bukar Ahmad,TCN issued suspension and disconnection orders to AEDC, with the disconnection to take effect on July 28.
The suspension notice (TCN/ISO/MO/2024/002) issued on July 19, 2024, highlighted AEDC’s continuous failure to meet prudential requirements despite previous notifications:
“This is a formal suspension notice to Abuja Electricity Distribution Company (AEDC) due to non- compliance with provisions of the Market Rules and failure to provide the Market Operator (MO) with an adequate Bank Guarantee in line with section 15.3.3 of the Market Rules.
“The MO had previously notified AEDC in writing of its Default of the Market Rules via;
Request for Fulfillment of Prudential Requirement dated 13/Feb/2024
Notice of Event of Default: Non-Fulfillment of Prudential Requirement dated 22/Mar/2024 and,Notice of Intent to Issue a Suspension Order: Non-Provisions of Adequate Bank Guarantee dated 8/Apr/2024.
“The MO in these notices requested that corrective actions be taken within specified period to cure the default. In spite of all notifications, AEDC failed to cure this Default. In view of this non-compliance, AEDC is hereby suspended from the MO Administered Electricity Market. No new contract or agreement shall be entered into with AEDC within the Suspension period.
“To remedy this situation, AEDC must provide an adequate Bank Guarantee within five
(5) Business Days (BD) from the date of this notice. If, after the 5 BD this default is not cured, AEDC’s network may be partially or totally disconnected from the grid in line with section 45 of the Market Rules.
“Furthermore, after 30 BD of the disconnection from the grid and the default is not cured, the Market Operator will terminate AEDC’s Market Participation Agreement”, the first Order stated.
The second Order marked, TCN also accused AEDC of non-compliance with the provisions of the Market Rules, and defaulting Market Participant.
“The Market Operator hereby issues a disconnection order for Abuja Electricity Distribution Company (AEDC) for its non-compliance with the provisions of the Market Rules. The defaulting Market Participant AEDC has been duly notified of their infractions with respect to non-compliance with section 15.3.3.a of the Market Rules.
“Disconnection date is 28, July 2024, and
disconnection loints are; 33Kv Feeder from 132/33Kv Katampe 1 Transmission Station and 33Kv Feeder 3 from 132/33Kv Central Area Transmission Station; Transmission Region; and Abuja Region”, the Order read.